diElisabetta Andreis
Kering, a luxury group whose brands include Gucci, Saint Laurent, Bottega Veneta and Balenciaga, has acquired the building from Blackstone: the amount is the highest ever invested in a single real estate asset in Italy
A monstrous transaction, the largest ever in Italy for the amount invested in a single asset. Kering, owner of brands such as Gucci, Saint Laurent, Bottega Veneta, Balenciaga and Pomellato, has taken over the iconic building in Via Monte Napoleone 8 for 1.3 billion where at the moment, among the tenants, there are the Cova pastry shop, Prada, a large Yves Saint Laurent boutique, Le Coultre watches and a Burberry that is about to open in place of Missoni.
Technically the French group purchased the company that owns the property which is managed by Kryalos (advisor) and controlled by Blackstone. But the operation also makes news because the property was one of thirteen that at the end of 2021, just over two years ago, Blackstone itself had taken over from Reale Compagnia Italiana (with Mediobanca advisor), spending 1.2 billion according to some real estate sources as the total price. Now, it collects 1.3 billion for just one of the thirteen assets (which are currently managed in different funds by Kryalos).
Via Monte Napoleone, which has become the first in Europe and the second in the world for retail rents, close to 20 thousand euros per square metre, much higher in prices than the nearby Via Sant’Andrea and now very distant from Via della Spiga, is taken by assault from luxury fashion houses. There in the heart of the Quadrilatero, the eighteenth-century building is spread over five floors: 11,800 square meters of gross surface area and more than 5,000 square meters of commercial surface area. It is rented with contracts that on average have a duration of nine years and 100 percent occupancy.
«This operation demonstrates the importance of the Monte Napoleone district in the context of real estate investments which ensure its privileged long-term position within the Quadrilatero. says Guglielmo Miani, president of Monte Napoleone district -. From 2011 to today, the street has climbed from 11th to second place among the most profitable streets in the world and sees a supply that is much lower than retail demand.” Demand also driven by the return of Chinese tourists, given that levels of 80 percent compared to pre-pandemic levels are expected to be reached in 2024, and by the increase in wealthy people with a high propensity to spend and in particular consumers of goods luxury, experts explain.
According to industry sources, Blackstone’s strategy is to purchase prestigious properties in which to insert high-end and very high-end brands and is about to purchase a very high-quality property in Bond Street in London, while in Milan it always keeps its eyes open on the Quadrilatero and not only. In Piazza Cordusio the giant instead followed the opposite path: it had taken over the Post Office building, where today JP Morgan, Starbucks and Kryalos are located, and then sold it to a company controlled by Mediobanca.
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April 4, 2024 (modified April 4, 2024 | 6:06 pm)
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2024-04-04 16:07:00
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